Top 3 Commercial Real Estate Trends to Look Out for in 2023
2.5 min read
Canada’s commercial real estate industry has seen its fair share of hardships and successes over the past few years. With recent economic uncertainty a growing worry, the industry is preparing for a significant shift in market trends. Only time will tell how this shift will impact the industry as a whole; however, many remain confident that the long-term outlook for the market is favourable.
Below are PWC’s top 3 commercial real estate trends that you should look out for in 2023.
1. Industrial real estate remains a reliable asset.
Industrial real estate has proven to be a reliable asset compared to other asset types and will continue to excel in the next year. Warehousing, fulfillment, data centres and self-storage remain top investment and development recommendations amongst industry professionals. However, it is essential to consider raising interest rates when assessing investment opportunities.
2. Multifamily residential housing is an uncertain investment among developers.
Multifamily residential housing has had some mixed reviews from CRE professionals. Factors such as rising immigration have created an ongoing demand for affordable housing across the country; however, the current environment seems to favour investment in these asset types rather than the development of it.
3. Life sciences continue to grow in investment potential.
With a strong focus on niche markets for this upcoming year, life sciences have and will continue to grow in investment potential. However, although positive, its uniqueness can be intimidating to some investors.
The commercial real estate industry has proven its resilience, making many professionals and investors confident that these trying times will end again. As stated by PWC, “The key to navigating this complex and volatile environment is a mix of patience, agility and a willingness to take bold actions to deliver sustained growth and outcomes in 2023 and beyond.”
Reference
PricewaterhouseCoopers. (n.d.). Emerging trends in real estate® 2023. PwC. Retrieved November 17, 2022, from https://www.pwc.com/ca/en/industries/real-estate/emerging-trends-in-real-estate.html
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